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Shell and Equinor tie-up to create new UK oil and gas producer

Shell and Equinor have announced a strategic partnership to form a new UK-based oil and gas production company, aiming to enhance efficiency and reduce costs in the North Sea operations. This collaboration will see Shell transferring its 30% stake in the Linnorm gas discovery in Norway to Equinor, while Equinor will transfer its 25% interest in the Shell-operated Scott field to Shell. The new entity will focus on optimizing production from existing assets, with Shell holding a 75% interest and Equinor a 25% interest. This move is part of a broader industry trend towards consolidation to improve competitiveness and sustainability in the face of declining production and increasing operational costs. The deal is expected to close in the second half of 2024, pending regulatory approval.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/general/shell-and-equinor-tie-up-to-create-new-uk-oil-and-gas-producer/ar-AA1vjtNR ]